The invention relates generally to check handling systems and more particularly to an improved check carrier for use in such systems.
It will be appreciated that millions of checks, both commercial and retail, are presented to financial institutions for posting and debiting every day. Each of these checks must be processed by the receiving financial institution and presented to a clearing bank with some checks processed by multiple institutions. Because of the volume of checks handled every day, the processing of checks is typically automated where high speed sorters automatically, read, sort and process the checks based on the MICR (magnetic ink character recognition) code printed on the bottom of the checks. A typical sorter will process 2,500 checks per minute.
Moreover, the Check Truncation Act (Check 21), intended to minimize the disruption of the nation's check collection and forwarding process by eliminating the national check clearing system that relies on paper-processing and physical transport, allows financial institutions to generate substitute image checks, or image replacement documents (IRD's), that have the same legal status as an original check. The IRD's can be sent as images between financial institutions and are treated the same as the original paper document. Again because of the high volume of checks processed each day, checks are scanned in high speed automated scanning equipment to create the IRD's.
Different institutions and different processes may utilize paper documents, IRD's or both. Even when paper documents are physically transferred they must be convertible into IRD's because the receiving institution may want to store the document as an IRD or transfer the document as an IRD to another institution for further processing. Because financial institutions require that checks be scanned into IRD's and/or processed as paper documents, virtually all checks are at some point scanned, processed and/or sorted by a high speed automated process.
When a check is damaged from tearing, folding or the like, the structural integrity of the check may be such that it cannot be put through the automated sorting and scanning equipment. To facilitate the automated processing of damaged checks, check carriers have been developed that hold the check for processing. Known check carriers do not securely retain the check. As a result checks can become separated from the carriers resulting in loss of the check or delay in processing. Additionally, current check carriers do not meet the image quality requirements set forth by the Federal Reserve. As a result financial institutions have been required to forward items in check carriers on a separate cash letter causing additional processing delays. Moreover, known check carriers do not reliably retain the check in a manner where the check can be automatically scanned, sorted and processed while in the carrier. Since existing check carriers do not provide an acceptable image of the front and back of the item, particularly an image of the financial institution's endorsement on the back of the item, financial institutions run the risk of financial loss and additional fees because of the inability to present a clear substitute IRD for clearing.
Thus an improved check carrier that securely retains the check in a manner where it can be easily and accurately scanned, to provide an acceptable image quality and be processed and sorted by automated equipment, is desired.